For Lisa Pope, a mother of three young boys, life can get pretty hectic.
And with her husband working away in the mines two weeks out of every three, she sure has her hands full.
And yet, she’s been able to grow a sizeable property portfolio in a short time, despite knowing very little about investing when she started.
And even though she’s made a couple of mistakes along the way, she’s struck upon a system that is really working for her… so much so that she’s hoping her family’s growing property portfolio will eventually mean her husband doesn’t have to work away from home so much and they’ll all be able to enjoy more time together – something they are all looking forward to.
This is her story…
I just decided I wanted to find a way to change things.
Working in the mines, Neil is bringing home a good income, and so I was looking for a way for all the sacrifices we are making now to really count.
So that was the catalyst for me looking around for a way to start investing and creating an income that didn’t depend on us working so hard in the future.
My First Investment – You Live & You Learn!
We live in a country area outside Perth and, at first, we were really only thinking about investing somewhere close by.
For our first investment, my husband’s uncle suggested an area that was doing well and we just kind of went with that, purchasing a property 90 mins from where we live.
We had lots of hassles with the contract and with the way we structured it, we ended up having it negatively geared, costing us over $800 a month out of our pockets.
At that point I realised this probably wasn’t going to get us the results we were looking for and I set about learning everything I could about property investing – attending every property seminar I could find and reading plenty of property magazines and reports.
Finding a Mentor
That’s when I stumbled on the “Lunch Money” concept.
I’d been to a few seminars, but when I heard property expert, Phil Anderson, describe his Lunch Money Model, I knew I’d found what I was looking for.
The idea that we could grow a property portfolio using little to no money out of our own pockets was brilliant and in stark contrast to my first taste of property investing, which was a drain on the family budget.
Using the system Phil developed, and with the help of my fantastic mentor from his team, Faye Roberts, we were able to purchase our next property using our Super (which was great because we weren’t happy with the performance of our Super Fund up to that time).
Near-Disaster at the 11th Hour
In order to buy the property using our Super money, we needed to setup up a Self Managed Super Fund (SMSF).
And this is where I learned a valuable lesson (that almost cost me a LOT of money).
As part of the Lunch Money Model, you get access to a bunch of experts including accountants, legal advisors, property managers and mortgage brokers.
I decided not to use the accountant my mentor, Faye, recommended because I’d been using my own accountant for some time and he assured me he knew how to set up an SMSF.
What I didn’t realise at the time is that whilst setting up an SMSF can be a straight forward process, not all accountants have a lot of experience in this area and it can be a minefield if you don’t know what you are doing.
And so, I found myself approaching my June 30 deadline (after which I would have to pay $14,000 in Stamp Duty due to changes in regulations) and my accountant still didn’t have my SMSF in place.
On 27th June I called Faye and said “Help!”
She said “Leave it with me” and on 29th June the accountant Faye recommended had my SMSF completely sorted in just a couple of hours and saved me $14,000 at the 11th hour.
I learned a lot that day about having a great team and I also learned to really trust Faye – she really did know what she was talking about and Phil’s team of experts were the real deal (since then my #1 Rule is “Always listen to Faye!”).
Seeing the amount of support I had and how much Phil’s team was doing for me – they handled everything, including managing the contract negotiations (which, in contrast to my first property, were so straight forward and hassle-free), I was more convinced than ever that this was the way to go.
And the great part is, with employer contributions into our SMSF, there are no out of pocket costs for us to hold this property.
Onto My Next One…
I’m already onto my next property and holding costs for it are just $10 a week.
Compare that to the $200+ a week the first property I bought (before I knew about Lunch Money investing) is costing me, and my only regret is that I didn’t find this way of investing sooner.
Using Phil’s Lunch Money Model we’ve actually purchased both properties in New South Wales.
Following Phil’s Property Clock concept we’re no longer limiting our thinking to only buying near where we live. Instead, we’re buying in areas with the best capital growth opportunity across Australia, so we can increase our equity as quickly as possible and use that to invest again. And Phil’s team is doing all the work researching all the markets and letting us know where the hot spots are, because I wouldn’t have the time to do that.
We do our own due diligence and everything has just stacked up.
As Phil says, it’s all about planting seeds, letting them do the work for you, and growing an orchard… and we’re thrilled to see our orchard growing right before our eyes… and it’s costing us virtually nothing to hold.It’s great news for our family… I’m really looking forward to what the future holds.
To learn more about the Lunch Money Model Lisa mentions, visit Phil Anderson’s website now